3 women charged in 'gifting' pyramid scheme

John Christoffersen

Published 8:12 pm, Wednesday, May 2, 2012

NEW HAVEN (AP) -- Three Connecticut women pleaded not guilty Wednesday to charges that they were involved in a "gifting table" pyramid scheme that authorities said led to losses of more than $1 million.

To join a gifting table, new participants must pay a $5,000 gift to the person occupying the "dessert" position at the top of the pyramid. Participants move through the pyramid from the bottom row, called "appetizers," to the top by recruiting additional women to join.

Prosecutors said 55-year-old Donna Bello and 64-year-old Jill Platt, both of Guilford, and 66-year-old Bettejane Hopkins of Essex were indicted on charges including wire fraud and filing false tax returns.

"The indictment alleges that the three defendants ran a pyramid scheme designed to enrich themselves at the expense of other participants," said Connecticut U.S. Attorney David Fein. "In addition, the indictment alleges that the defendants tried to use the pretext of `gifting tables' as a way to avoid paying taxes on the substantial illegal proceeds of their scheme."

They pleaded not guilty in U.S. District Court in Hartford and were released on bond.

"Everything Jill Platt did was legal and based upon the advice of various lawyers who were consulted over the years who specialized in these sorts of things," said Platt's attorney, Jon Einhorn.

Authorities say the women recruited other participants through meetings, parties and conference calls and misrepresented to recruits that gifting tables were not a pyramid scheme. The scheme ran from 2008 until last year, authorities said.

The women who were charged sent emails promising others they could make $80,000 to $120,000, according to the indictment.

"It's sort of a joke that I refer to our freezer as the ATM," Platt emailed a participant, according to the indictment.

Bello complained about two recruits.

"They have had enough parties," Bello wrote, according to the indictment. "It's costing us a small fortune in their food and wine delights. No more parties until they commit with the cash."

Bello claimed in an email in 2009 that more than $5 million "have exchanged hands," according to the indictment. She also advised a participant on whether to keep money from gifting tables.

"U can keep it in your checking or savings account if you want to," she wrote, authorities said. "As women we like our own stash. Keep it in a safe. Keep it quiet because rather not have red flags raised."

If convicted, each wire fraud charge carries a prison sentence of up to 20 years. A conviction on a charge of filing a false tax return is punishable by a maximum prison sentence of three years.